Opendoor downgraded to Underperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst Ryan Tomasello downgraded Opendoor Technologies (OPEN) to Underperform from Market Perform with a price target of $1, down from $1.55. The analyst expects real estate technology and services stocks to remain volatile in 2023 “as investors continue to ascribe a high risk premium to the group.” He is cautious on most sub-scale, low-profitability companies, and his highest-conviction ideas to avoid are Opendoor and Offerpad Solutions (OPAD). For investors with longer-term time horizons, Tomasello continues to recommend owning CoStar Group (CSGP) and SmartRent (SMRT) “given their defensive growth qualities.”